[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9993 Introduced in House (IH)]
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118th CONGRESS
2d Session
H. R. 9993
To amend the Internal Revenue Code of 1986 to provide tax incentives
for the establishment and operation of small food retail businesses in
areas with high food retail concentration and low levels of
competition.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 15, 2024
Ms. Sherrill (for herself and Mrs. Hayes) introduced the following
bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide tax incentives
for the establishment and operation of small food retail businesses in
areas with high food retail concentration and low levels of
competition.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Restoring Establishment Deductions
and Uplifting Competition to Ease Food Prices Act'' or the ``REDUCE
Food Prices Act''.
SEC. 2. INCREASED REHABILITATION TAX CREDIT FOR QUALIFIED SMALL FOOD
RETAIL BUSINESSES.
(a) In General.--Section 47 of the Internal Revenue Code of 1986 is
amended by adding at the end the following new subsection:
``(e) Special Rule for Qualified Small Food Retail Businesses.--
``(1) In general.--In the case of a qualified rehabilitated
building placed in service by a qualified small food retail
business, subsection (a)(2) shall be applied by substituting
`25 percent' for `20 percent'.
``(2) Qualified small food retail business defined.--
``(A) In general.--For purposes of paragraph (1),
the term `qualified small food retail business' means a
business--
``(i) which is described in section
38(c)(5) (determined by applying `$200,000,000'
for `$50,000,000' in such section),
``(ii) at least 70 percent of the annual
average gross receipts of which are
attributable to the retail sale of food or
produce, and
``(iii) which is located in a low-
competition area.
``(B) Low-competition area.--For purposes of
subparagraph (A), the term `low-competition area' means
a county with respect to which the Herfindahl-Hirschman
Index for the retail food sector, as measured by the
Economic Research Service of the United States
Department of Agriculture, is at or above a level of
1,400.''.
(b) Effective Date.--The amendment made by this section shall apply
to property placed in service after the date of the enactment of this
Act.
SEC. 3. INCREASED WORK OPPORTUNITY TAX CREDIT FOR QUALIFIED SMALL FOOD
RETAIL BUSINESSES.
(a) In General.--Section 51(b)(3) of the Internal Revenue Code of
1986 is amended--
(1) by striking ``The amount'' and inserting
``(A) In general.--The amount'', and
(2) by adding at the end the following new subparagraph:
``(B) Increased limitation for qualified small food
retail businesses.--In the case of wages paid by an
employer that is a qualified small food retail business
(as defined in section 47(e)(2)(A)), subparagraph (A)
shall be applied--
``(i) by substituting `$8,000' for
`$6,000',
``(ii) by substituting `$14,000' for
`$12,000',
``(iii) by substituting `$16,000' for
`$14,000', and
``(iv) by substituting `$26,000' for
`$24,000'.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 4. INCREASED BONUS DEPRECIATION FOR QUALIFIED SMALL FOOD RETAIL
BUSINESSES.
(a) In General.--Section 168(k) of the Internal Revenue Code of
1986 is amended by adding at the end the following new paragraph:
``(10) Special rule for qualified small food retail
businesses.--
``(A) Increased applicable percentage for property
placed in service by qualified small food retail
businesses.--In the case of property placed in service
by a taxpayer that is a qualified small food retail
business (as defined in section 47(e)(2)(A)), paragraph
(6) shall be applied--
``(i) in subparagraph (A)--
``(I) by substituting `70 percent'
for `60 percent' each place it appears,
``(II) by substituting `50 percent'
for `40 percent' each place it appears,
and
``(III) by substituting `30
percent' for `20 percent' each place it
appears, and
``(ii) in subparagraph (B)--
``(I) by substituting `70 percent'
for `60 percent' each place it appears,
``(II) by substituting `50 percent'
for `40 percent' each place it appears,
and
``(III) by substituting `30
percent' for `20 percent' each place it
appears.
``(B) Increased applicable percentage for plants
bearing fruits and nuts planted or grafted by qualified
small food retail businesses.--In the case of plants
bearing fruits and nuts planted or grafted by a
taxpayer that is a qualified small food retail business
(as defined in section 47(e)(2)(A)), paragraph (6)(C)
shall be applied--
``(i) by substituting `70 percent' for `60
percent' each place it appears,
``(ii) by substituting `50 percent' for `40
percent' each place it appears, and
``(iii) by substituting `30 percent' for
`20 percent' each place it appears.''.
(b) Effective Date.--The amendments made by this section shall
apply to property placed in service, or plants planted or grafted,
after the date of the enactment of this Act.
SEC. 5. INCREASED QUALIFIED BUSINESS INCOME DEDUCTION FOR QUALIFIED
SMALL FOOD RETAIL BUSINESSES.
(a) In General.--Section 199A of the Internal Revenue Code of 1986
is amended by redesignating subsection (i) as subsection (j) and by
inserting after subsection (h) the following new subsection:
``(i) Special Rule for Qualified Small Food Retail Businesses.--In
the case of a qualified small food retail business (as defined in
section 47(e)(2)(A)), subsection (a)(2) shall be applied by
substituting `25 percent' for `20 percent'.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 6. NEW FOOD RETAIL BUSINESS TAX CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 45BB. NEW FOOD RETAIL BUSINESS CREDIT.
``(a) In General.--For purposes of section 38, in the case of a new
small food retail business, the new food retail business credit under
this section for the taxable year is an amount equal to 15 percent of
qualified investment amounts paid or incurred during the taxable year.
``(b) Definitions.--For purposes of this section--
``(1) New food retail business.--The term `new food retail
business' means a qualified small food retail business (as
defined in section 47(e)(2)(A)) which began operations during
the previous three taxable years.
``(2) Qualified investment amounts.--The term `qualified
investment amounts' means amounts paid for capital investment
in the property, facilities, or equipment of a business
premises used for retail sales of the new food retail
business.''.
(b) Credit Part of General Business Credit.--Section 38(b) of the
Internal Revenue Code of 1986 is amended by striking ``plus'' at the
end of paragraph (40), by striking the period at the end of paragraph
(41) and inserting ``, plus'', and by adding at the end the following
new paragraph:
``(42) the new food retail business credit determined under
section 45BB(a).''.
(c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by adding at the end the following new item:
``Sec. 45BB. New food retail business credit.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
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